Two Florida Restaurants Ordered to Pay Workers more than $900,000

Posted on August 19, 2011 by Christopher McKinney

Two restaurants in Jacksonville and their owners have been ordered to pay 30 employees $934,425 in back wages and liquidated damages under the terms of consent judgments. The agreements resolve a U.S. Department of Labor lawsuit based on an investigation by its Wage and Hour Division that alleged violations of the Fair Labor Standards Act’s minimum wage, overtime pay and record-keeping provisions.

Investigators found that kitchen employees were improperly classified as exempt from FLSA overtime pay provisions and consequently paid salaries that did not include compensation for hours worked over 40 in a week. Additionally, every week, tipped employees would receive their tips plus a paycheck that together equaled the minimum wage; however, management required the employees to sign and return the paychecks, and would then cash the checks and put the money back into the restaurant. Through this process, while it appeared that the owners were paying wages, the employees actually were allowed to keep only their tips. Finally, the employers did not maintain accurate records of the hours worked by employees.

The employees will receive $584,425 in back wages and an additional $350,000 in liquidated damages.

The FLSA requires that covered employees be paid at least the federal minimum wage for all hours worked, as well as one and one-half times their regular rates of pay for hours worked over 40 per week. If certain conditions are met, the FLSA permits an employer to take a tip credit toward its minimum wage obligation for tipped employees. The employer must pay tipped employees a cash wage of $2.13 per hour or the state mandated cash wage, whichever is higher; all tips must be retained by the employee except for contributions to a valid tip pooling arrangement; employees must be informed of the tip credit provision; and the amount of tips plus cash wages must equal the federal minimum wage, currently $7.25 per hour. Additionally, the law requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.

 

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US Labor Department sues Texas state agency for failing to pay 800 workers for overtime hours amounting to more than $1 million in back wages

Posted on June 8, 2011 by Christopher McKinney

The U.S. Department of Labor today filed a lawsuit against the Texas Department of Family and Protective Services' Child Protective Services Division in Austin for failing to pay 800 current and former investigators and case workers overtime compensation as required by the Fair Labor Standards Act ("FLSA"). The suit seeks back wages of more than $1 million, plus liquidated damages.

The complaint was filed in the U.S. District Court of the Western District of Texas, Austin Division. After an in-depth investigation into CPS' practices statewide, the department's Wage and Hour Division determined that the employees were working "off the clock" rather than compensated for all hours worked. Additionally, supervisors were instructing employees not to record all of their hours worked. Further, required record keeping was not maintained.


The investigation by the Wage and Hour Division's San Antonio office, covering the three-year period from June 2008 to the present, found that CPS willfully violated the FLSA by failing to pay employees for all hours worked over 40 in a week.  In 2000, the Labor Department filed a similar lawsuit against another Texas state agency.  That suit resulted in the state having to cough up $2 million to workers who had been shorted.


The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.

 

 

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HR Question: Should I Be Paid For Travel Time?

Posted on March 10, 2010 by Christopher McKinney

 We get a high volume of basic HR-related questions here at the HR Lawyer's Blog.  So many, in fact, that we are sometimes not able to respond to each and every one of them individually as we would like. So it occurred to us that it might be a good thing to post some of these questions and answer them publicly on the site.  Thus we begin the first in what we hope will be a regular series titled "HR Questions."

 

Today's question involves application of the Fair Labor Standards ("FLSA") to travel time.  A reader asks:

 

My job requires me to drive from home to various work sites all over the state for my job.  The company does not provide me with a vehicle to drive so I have to use my own and they only start paying me for my time after I arrive at the work site.  Is this legal?

 

Note:  As with many legal answers, the correct answer will vary depending on the particular facts of each case and the law of your particular jurisdiction.  Questions involving the FLSA and compensation for types of work or pre- and post-work activity are highly fact sensitive.  You SHOULD NOT rely on anything you read on this site or any other website as a definitive answer for your situation.  This website is not legal advice.  You SHOULD consult with a qualified employment law specialist in your area to get a legal opinion specific to your situation and jurisdiction.

 

Response: Generally speaking, time spent traveling during normal work hours is considered compensable work time. Time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally does not have to be paid. This commuting exception applies only if the travel is within the normal commuting area for the employer's business and the use of the vehicle is subject to an agreement between the employer and the employee.

So, a good general rule of thumb is to think of it in terms of commuting.  The FLSA does not require an employer to pay you for what would be considered a normal pre-work or after-work commute - even if it is to a different location in town than your normal workplace.  However, requiring you to drive to another city or another work site during normal working hours is generally considered to be compensable and must be paid.  

Hope this helps.

 
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